Russia, China reach agreement on second Power of Siberia gas pipeline

Russian President Vladimir Putin said Tuesday that he and Chinese President Xi Jinping reached an agreement on the Power of Siberia 2 gas pipeline, which will connect Siberia to northwest China.

"All agreements have been reached," Putin said. Putin held talks with Xi, who is on a state-visit to Russia, and highlighted that the economic cooperation between the nations was a "priority".“China has become a leader in the import of Russian oil, while Russia is ready to increase uninterrupted oil supplies for the needs of the Chinese economy,” Putin added.

Also Read | Report sounds alarm over humanity's 'vampiric' overconsumption of its 'lifeblood' water

Add WION as a Preferred Source

The leaders of Russia and China met in September of last year as well to discuss this infrastructure project.

Gas from Power-of-Siberia 2 will be transported to China via Mongolia. It is important to remember that China already receives gas from Russia's Gazprom through the first Power of Siberia pipeline as part of a 30-year, $400 billion agreement. The project started operations in 2019.

Also Read |Uganda to criminalise identification as LGBTQ; introduces strict punishments for violations

First pipeline will continue to increase in its supply volume before achieving its maximum capacity of 38 bcm by 2025.

The second pipeline would now transport gas to China, the world's largest energy consumer, from the vast Yamal peninsula deposits in west Siberia. The project had been under negotiation for years but now it is more urgent since Moscow wants Beijing to take the place of Europe as its main gas consumer.

Yet, according to industry analysts, China won't require more gas until 2030.

Watch |Earthquake in Afghanistan: 9 killed and over hundred injured after 6.6 magnitude earthquake

Gazprom earlier said the 2,600-km pipeline could transport 50 billion cubic metres (bcm) of natural gas annually.The building of pipelines carrying gas from Russia to China via Mongolia has the approval of Mongolia's president, Ukhnaagiin Khurelsukh.

ManyRussian businesses andoligarchshave been sanctioned by western nations. Russia is attempting to strengthen its economic partnerships with allies right now, particularly China.

Western sanctionsare designed to reduce Russia's capacity to fund the conflict in Ukraine and give a blow to its economy. However, in contrast, Putin in a recent statement said that Russia's economy is standing strong despite western efforts to bring it to its knees.

WATCH WION LIVE HERE

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.